CIRCULAR

ON AMENDMENT OF PREFERENTIAL RATES OF IMPORT DUTY FOR MILK IN THE PREFERENTIAL IMPORT DUTY TARIFF

Pursuant to Law on Import and Export Duties 45-2005-QH11 dated 14 June 2005;
Pursuant to Resolution 295-2007-NQ-UBTVQH12 of the Standing Committee of the National Assembly dated 28 September 2007 on issuance of an export duty tariff on the basis of the list of groups of taxable goods and bracket rates of duty applicable to each group of goods, and a preferential import duty tariff on the basis of the list of groups of taxable goods and bracket rates of preferential duty applicable to each group of goods;
Pursuant to Decree 149-2005-ND-CP of the Government dated 8 December 2005 making detailed regulations for implementation of the Law on Import and Export Duties;
Pursuant to Decree 118-2008-ND-CP of the Government dated 27 November 2008 stipulating functions, duties, powers and organizational structure of the Ministry of Finance;
The Ministry of Finance hereby provides the following guidelines for application of preferential rates of import duty and an explanation of the classification of a number of milk products included in the preferential import duty tariff:

Article 1. Rates of import duty for milk

To adjust the rates of preferential import duty applicable to several groups of milk products under headings 04.02 and 19.01 stipulated in Appendix 1 issued with Decision 106-2007-QD-BTC of the Minister of Finance dated 20 December 2007 promulgating an export duty tariff and a preferential import duty tariff and amending and adding to legal instruments to apply new rates of preferential import duty stipulated in the list issued with this Circular (Appendix I).

Article 2. Guidelines for classification

The Ministry of Finance provides guidelines for classification of milk powder in Appendix II issued with this Circular in order to apply codes and calculate duty to conform with this Circular.

Article 3. Effectiveness

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FOR THE MINISTER
DEPUTY MINISTER




Do Hoang Anh Tuan

APPENDIX I

AMENDED LIST OF PREFERENTIAL RATES OF IMPORT DUTY FOR A NUMBER OF MILK PRODUCTS
(Issued with Circular 162/2009/TT-BTC of the Ministry of Finance dated 12 August 2009)

Heading

Description

Duty rate (%)

...

...

...

04.02

...

...

...

0402

10

- In powder, granule or other solid forms, of a fat content, by weight, not exceeding 1.5%:

0402

10

...

...

...

- - In containers of a gross weight of 20 kg or more:

0402

10

30

10

- - -  Not containing added sugar or other sweeteners, in powder form

3

...

...

...

10

30

20

- - - Not containing added sugar or other sweeteners, in other forms

3

0402

10

30

90

...

...

...

5

0402

10

90

- - Other types:

0402

10

...

...

...

10

- - - Not containing added sugar or other sweeteners, in powder form

3

0402

10

90

20

- - - Not containing added sugar or other sweeteners, in other forms

3

...

...

...

10

90

90

- - - Other types

5

...

...

...

0402

21

- - Not containing added sugar or other sweeteners:

0402

21

...

...

...

00

- - - In containers of a gross weight of 20 kg or more

3

0402

21

90

00

- - - Other types

3

...

...

...

29

- - Other types:

0402

29

20

00

...

...

...

5

0402

29

90

00

- - - Other types

5

...

...

...

- Other types:

0402

91

00

00

- - Not containing added sugar or other sweeteners

10

...

...

...

99

00

00

- - Other types

20

...

...

...

19.01

Malt extract; food preparations of flour, groats, meal, starch or malt extract, not containing cocoa or containing less than 40% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included; food preparations of goods under headings 04.01 to 04.04, not containing cocoa or containing less than 5% by weight of cocoa calculated on a totally defatted basis, not elsewhere specified or included.

1901

10

...

...

...

- Preparations for children's use, readily packed for retail sale:

1901

10

10

00

- - Made from malt extract

10

...

...

...

10

20

- - Made from goods under headings 04.01 to 04.04:

1901

10

20

10

...

...

...

5

1901

10

20

90

- - - Other types

5

1901

10

...

...

...

00

- - Made from soya-bean powder

20

1901

10

90

- - Other types:

...

...

...

10

90

10

- - - Medical food

5

1901

10

90

90

...

...

...

10

1901

20

- Mixes and dough for the preparation of bakers' ware under heading 19.05:

1901

20

...

...

...

00

- - Made from flour, groats, meal, starch or malt extract, not containing cocoa

15

1901

20

20

00

- - Made from flour, groats, meal, starch or malt extract, containing cocoa

15

...

...

...

20

30

00

- - Other types, not containing cocoa

15

1901

20

40

00

...

...

...

15

1901

90

- Other types:

1901

90

...

...

...

- - Children's food, not packed for retail sale:

1901

90

10

10

- - - Medical food

5

...

...

...

90

10

90

- - - Other types

10

1901

90

20

00

...

...

...

10

- - Other types, made from products under headings 04.01 to 04.04:

1901

90

...

...

...

00

- - - Containing milk

5

1901

90

39

- - -Other types:

...

...

...

90

39

10

- - - - Medical food

5

1901

90

39

90

...

...

...

10

- - Other soya-based preparations:

1901

90

...

...

...

00

- - - In powder form

20

1901

90

49

00

- - - In other forms

20

...

...

...

90

90

- - Other types:

1901

90

90

10

...

...

...

5

1901

90

90

90

- - - Other types

15

APPENDIX II

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1. Heading 0402: milk powder with full cream and semi-skimmed or skimmed milk, which may contain added sugar or other sweeteners. In addition to natural milk ingredients, milk under this heading may contain a small quantity of stabilizers (such as disodium phosphate, trisodium citrate and calcium chloride) or a very small quantity of antioxidant or anti-caking agents (such as phosphorus lipids or amorphous silicon dioxide) or added vitamins (additional ingredients such as vitamins and minerals being substances available in natural milk), or may contain a small quantity of chemicals such as sodium carbonate necessary for processing and a small quantity of starch may also be added to maintain the milk in its normal physical state (but not exceeding 5% of the mass).

2. Heading 1901: food processed from products under headings 0401 to 0404 which does not contain cocoa or contains totally defatted cocoa of less than 5% of its mass. Products from milk of this heading shall ensure one of the following criteria:

 (a) Containing a content of starch exceeding 5%;

 (c) Containing added ingredients other than the ingredients of natural milk (such as oleic acid, vegetable oil, substitute for milk fat, yeast, etc.)

3. Medical food (MF) containing milk under heading 19.01 is different from other milk products of the same heading because the former is used for special nutritional purposes or is a type of special nutritional food meeting health requirements (for example: for patients suffering from cancer) and the use of which requires medical supervision. In addition, products only containing nutritional ingredients to assist treatment of special medical conditions are stipulated in the prevailing laws in relation to medicines in the same way as nutritional preparations which may be used for injection. In general, milk products which are considered as a type of medical food must meet at least the following criteria:

(a) Being a type of food taken orally or intravenously;

(b) Having an attached label specifying that [the product] is used for adjustment of nutrition in regimens, diseases or medical disorders;

(c) Having an attached label specifying that [the product] is used under medical supervision.